Tuesday, 07 January 2014 15:30

Senate Confirms Yellen; Paul, Cruz, Others Demand Fed Audit

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By a vote of 56 to 26, the U.S. Senate confirmed Janet Yellen (shown) as the next chair of the Federal Reserve, following Ben Bernanke’s retirement from the Fed at the end of the month. The Senate vote came Monday evening, January 6, with 18 members failing to vote, most of whom were stranded by weather at airports and unable to get back to Washington in time for the confirmation vote. Eleven Republicans broke party ranks to join a solid Democrat vote in favor of Yellen, who has held various positions at the Fed for more than a decade, most recently as vice chair under Bernanke. (For the Senate roll call vote on the Yellen nomination, see below.)

Senator Rand Paul (R-Ky.), who was stranded by weather, arrived after the vote, but delivered a scathing denunciation in the Senate of the Fed’s secrecy and money manipulation:

I rise today in opposition to secrecy, in opposition to the veil of secrecy that clothes the money changing that takes place in the temple of the Federal Reserve. While the money changes hands the moneyed class gets richer and the middle class gets shortchanged. It is more than time to part the curtain that hides the trillions of dollars that change hands. There is a revolving door from Wall Street to the Treasury to the Fed and back again. We have former Secretaries of Treasury who go from government to Wall Street pocketing hundreds of millions of dollars. I’ve called repeatedly for transparency at the Federal Reserve, so Americans can see what is being done with their money supply. Every time I call for transparency people from both sides have said “transparency would undermine Fed independence.”

This is, in a sense, laundering money from the American people to bail out big banks and Wall Street.

Senator Ted Cruz (R-Texas), who voted against the Yellen nomination, released the following statement on the confirmation vote:

We’re five years into the Federal Reserve’s quantitative easing program, and the economy is stuck in malaise. Printing money by the trillions is dangerous, and working people need real economic growth to get their lives back on track.

Janet Yellen has said she intends to continue current Fed policy, which may help Wall Street but is leaving Main Street with higher prices for gas and food, near-zero interest rates for savers, and stagnation for small businesses that aren’t growing or hiring. Meanwhile, workers' wages remain depressed and most households haven’t recouped their lost wealth from the recession.

I'm also troubled that Ms. Yellen continues to oppose full transparency at the Fed — we need to audit the Fed now, so the American people can fully understand the scope and consequences of its recent extraordinary policies. For these reasons, I cannot support her nomination.

Campaign for Liberty, founded by Rep. Ron Paul, the longtime Federal Reserve critic, released the following statement from C4L President John Tate after the U.S. Senate confirmed Janet Yellen to be the next chair of the Federal Reserve:

As long as Congress allows the Federal Reserve to operate in almost total secrecy, it makes no difference who chairs one of the world’s most powerful institutions. Policy at the Federal Reserve will not change with Yellen at the helm.

Yellen will continue to inflate the currency, bail out Wall Street, and demand these actions be kept secret from the American people. Harry Reid, despite repeatedly calling for an audit of the Federal Reserve throughout his career, has now become the greatest cheerleader for Federal Reserve secrecy by refusing to even allow a vote on legislation supported by nearly 75 percent of Americans.

Campaign for Liberty will continue to mobilize Americans in support of H.R 24 and S.209, our top legislative priorities, in 2014.

H.R. 24, the Federal Reserve Transparency Act of 2013, and S. 209, its Senate counterpart will be major battlegrounds in the fight for liberty in the coming year.


Alexander (R-Tenn.),
Ayotte (R-N.H.),
Baucus (D-Mont.),
Bennet (D-Colo.),
Blumenthal (D-Conn.),
Booker (D-N.J.),
Boxer (D-Calif.),
Brown (D-Ohio),
Burr (R-N.C.),
Cantwell (D-Wash.),
Cardin (D-Md.),
Carper (D-Del.),
Casey (D-Pa.),
Chambliss (R-Ga.),
Coats (R-Ind.),
Coburn (R-Okla.),
Collins (R-Maine),
Coons (D-Del.),
Corker (R-Tenn.),
Donnelly (D-Ind.),
Feinstein (D-Calif.),
Flake (R-Ariz.),
Franken (D-Minn.),
Gillibrand (D-N.Y.),
Hagan (D-N.C.),
Heinrich (D-N.M.),
Hirono (D-Hawaii),
Johnson (D-S.D.),
Kaine (D-Va.),
Kirk (R-Ill.),
Klobuchar (D-Minn.),
Landrieu (D-La.),
Leahy (D-Vt.),
Levin (D-Mich.),
Manchin (D-W.Va.),
McCaskill (D-Mo.),
Menendez (D-N.J.),
Merkley (D-Ore.),
Mikulski (D-Md.),
Murkowski (R-Ark.),
Murphy (D-Conn.),
Murray (D-Wash.),
Nelson (D-Fla.),
Pryor (D-Ark.),
Reed (D-R.I.),
Reid (D-Nev.),
Rockefeller (D-W.Va.),
Schatz (D-Hawaii),
Schumer (D-N.Y.),
Stabenow (D-Mich.),
Tester (D-Mont.),
Udall (D-Colo.),
Udall (D-N.M.),
Warner (D-Va.),
Whitehouse (D-R.I.),
Wyden (D-Ore.),

Barrasso (R-Wy.),
Blunt (R-Mo.),
Boozman (R-Ark.),
Cochran (R-Miss.),
Cornyn (R-Texas),
Crapo (R-Idaho),
Cruz (R-Texas),
Enzi (R-Wy.),
Fischer (R-Neb.),
Grassley (R-Iowa),
Heller (R-Nev.),
Hoeven (R-N.D.),
Inhofe (R-Okla.),
Isakson (R-Ga.),
Johanns (R-Neb.),
Johnson (R-Wis.),
Lee (R-Utah),
Risch (R-Idaho),
Roberts (R-Kan.),
Rubio (R-Fla.),
Sessions (R-Ala.),
Scott (R-S.C.),
Shelby (R-Ala.),
Toomey (R-Pa.),
Vitter (R-La.),
Wicker (R-Miss.),

Baldwin (D-Wis.),
Begich (D-Ark.),
Durbin (D-Ill.),
Graham (R-S.C.),
Harkin (D-Iowa),
Hatch (R-Utah),
Heitkamp (D-N.D.),
King (I-Maine),
Markey (D-Mass.),
McCain (R-Ariz.),
McConnell (R-Ky.),
Moran (R-Kan.),
Paul (R-Ky.),
Portman (R-Ohio),
Sanders (I-Vt.),
Shaheen (D-N.H.),
Thune (R-S.D.),
Warren (D-Mass.),

Related articles:

CFR Pushes, Praises Its Own Stanley Fischer for No. 2 Spot at Fed

Fed Nominee Yellen, a Staunch Inflationist and Establishmentarian

Rand Paul Commits to Tie Yellen Nomination to Audit the Fed Bill

A Return to Keynes?


  • Comment Link Heidi Preston Thursday, 09 January 2014 00:31 posted by Heidi Preston

    Goldman Sachs got their girl in and can look forward to the continued mugging of Americans through the Federal Reserve and Senator King needs to shut up and read more.

    From a question and answer session with a journalist-
    "Goldman Sachs’ Jan Hatzius and Kris Dawsey have a report structured as a Q&A. Here are the two questions regarding Fischer’s views on monetary policy:....In other words, Fischer is not shy about loose and easy monetary policy.
    What about forward guidance? This topic was a bit more interesting. (Emphasis added)

    Q. What does he think about forward guidance?
    In contrast to his statements on QE, he (Stanley Fischer) has recently expressed a more sceptical view of forward guidance. Specifically, he noted in September that “if you give too much forward guidance you do take away flexibility,” that “we don’t know what we’ll be doing a year from now. It’s a mistake to try and get too precise,” and that “you can’t expect the Fed to spell out what it’s going to do…because it doesn’t know.” These statements contrast with Yellen’s strong endorsement of forward guidance. In that sense, Fischer’s statements do pose at least some risk to our expectation that the FOMC will ultimately enhance its forward guidance by reducing the unemployment threshold to 6.0%. That said, such a limited number of statements are unlikely to capture all of the nuances of Fischer’s thinking on the topic. One can also argue that his criticisms apply mostly to calendar-based guidance and less to outcome-based guidance, which only requires the Fed to “spell out what it’s going to do” in a more conditional sense. In any case, we have little doubt that Yellen and Fischer would see eye to eye on the need to prevent a large tightening of financial conditions anytime soon, so the slightly greater uncertainty that might result from his nomination is mainly about tactics, not strategy.

    Forward guidance is becoming a hot topic lately as it appears it will become a more important policy tool as the Fed eventually tapers and ends quantitative easing."

    Definition of forward guidance-“Forward guidance” is communication by a central bank aimed at signalling the likely future path of policy rates. All of the big-3 central banks (the Fed, Bank of Japan and the ECB) have experimented over recent years with more explicit forward guidance through their official communications. Generally it is through the use of “code words,” such as removal of policy accommodation at a “measured pace,” or the exercise of “strong vigilance” toward inflation risks.
    At the Fed, at least, there has been a step back from this practice over the past year, with recent FOMC post-meeting statements no longer containing the explicit signals about future policy that had become routine --- and the subject of much scrutiny by market commentators --- in the period between 2003 and 2006.

    1. These statements prove Senator Rand Paul's assertion that there is "secrecy" and code words within the Federal Reserve (apparently Senator King is either blissfully ignorant of it or is a fellow agent of it) through the Forward guidance practice which Goldman Sachs speaks of.
    2. It is blatantly obvious that these bankers place their agents in special sectors to ensure that the "path" doesn't get altered by the one's who only have one citizenship instead of dual.
    3. Apparently 6% is the goal to reach for unemployment which also tells us that the bankers manipulate such outcomes with interest rates and monetary policy.
    Pass this information on to those who have ears and can hear and those who have eyes and can see.....if real hope and change is to come to America, it has to come from within the appointed representative because the agents have already been selected and are well on their way to destroy America even further...

  • Comment Link REMant Tuesday, 07 January 2014 15:13 posted by REMant

    Remarkable, I think, just how much she looks like her one-time student, Larry Summers.

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